Standards

The Risk Management Transactions for New Issuance Standard sets out expected behaviours that are designed to improve the practice and awareness regarding risk management activity that is conducted in and around the new issuance of bonds.

These improvements should enhance the fairness and effectiveness of the process for all market participants.

This Standard sets out enhancements to existing practices that are designed to improve the new issue process continuum (from the granting of a mandate to the publication of statistics), which improvements should enhance the fairness and effectiveness of the process for all participants, including issuers, investors and lead managers.

The Binary Options standard for the Commodities markets Standard aims to describe the characteristics of a type of transaction which is used by participants in the Commodities markets and to set out certain expected behaviours of wholesale market participants that enter into them.

This Standard aims to describe the characteristics of a Reference Price Transaction (“RPT”) and to set out certain expected behaviours of wholesale market participants that enter into them.

Transparency Drafts

All Standards and some Statements of Good Practice are published for feedback as Transparency Drafts.
FMSB seeks comment on Transparency Drafts. Please click on the link to the right to leave comments or email comments to standards@fmsb.com

This paper sets out Good Practice Statements for the identification of conduct risks in market transactions using this methodology. The identification of conduct risk is an important role undertaken by the Front Office, as well as by control and oversight functions, and firms should consider their own practices in light of this Statement of Good Practice and make any changes to such practices that they deem to be appropriate.

The Conduct Risk in Market Transactions Statement of Good Practice is issued as a Transparency Draft. Please provide your comments by 26 October 2018.

The FMSB Transparency Draft of the Algorithmic Trading In FICC Markets Statement of Good Practice sets out a number of Good Practice Statements in relation to the use of Algorithms by FMSB member firms in their FICC business activities.

The Algorithmic Trading In FICC Markets Statement of Good Practice is issued as a Transparency Draft. Please provide your comments by 7 September 2018.

The question of what information may be shared between participants in the Fixed Income and Commodities markets is complex. This Statement of Good Practice seeks to bring some clarity to certain questions relating to the sharing of information within those markets.

The Information & Confidentiality Statement of Good Practice is issued as a Transparency Draft. Please provide your comments by 31 August 2018.

The Secondary Market Trading Error Compensation Standard Transparency Draft sets out expected behaviours that are designed to improve the practice regarding the payment of compensation for trading errors.

You may leave comments on the FMSB website or email comments to standards@fmsb.com.

Statements of Good Practice

Statements of Good Practice reflect FMSB’s view of what constitutes good or best practice in the areas covered by the Statement of Good Practice in question.
FMSB members are expected, and other firms are invited, to consider their own practices in light of relevant Statements of Good Practice and make any changes to such practices that they deem to be appropriate.

Suspicious Transaction and Order Reporting Statement of Good Practice for FICC Market Participants covers the identification of suspicious orders and transactions and their reporting to relevant regulators (the FCA in the case of the UK). Many of the practices described relating to the identification and investigation of suspicious activity will be relevant to many jurisdictions.

The Monitoring of written electronic communications Statement of Good Practice for FICC Market Participants is designed to be relevant to all front-office and control or support function personnel who are active participants in the FICC markets and to those who are engaged in the monitoring and surveillance of those activities.

The Front Office Supervision Statement of Good Practice outlines good practice for the Supervision of front office activities that may directly affect the functioning of FICC markets and/or conduct with market participants.

This Statement of Good Practice sets out a number of Core Principles relevant to conduct training, together with good practices that are currently used in Member Firms to achieve the outcomes specified in these Core Principles.